The $5.4 Billion Private Student Loan Problem

As policymakers and legislators consider treatment of private student loans in bankruptcy as well as what role the consumer protection agency should play, First Marblehead's recent 10-Q provides more evidence of subprime student loans made in the 2004-07 period.  Sallie Mae executives recently noted in an investor meeting that of the $6 billion in non-traditional [...]

Dept. of Education Asking Non-Profits For Info Regarding Servicing Capabilities

I came across this listing in the Federal Business Opportunities Website which was originally posted on April 29th and updated on May 6th.  It requests information from non-profits interested in servicing federal student loans as part of the set-aside in the Student Aid and Fiscal Responsibility Act.  Here is a link to the document.  Here [...]

For-Profit Education Stocks Soar In Late Trade; Inside Higher Ed. Article Provides A Clue

From Yahoo Finance: Symbol Last Trade Change Volume Intraday Related Info APOL 3:48PM EDT 58.10 5.32 10.08% 6,289,027 DV 3:48PM EDT 61.97 2.81 4.75% 1,717,115 ESI 3:48PM EDT 110.16 7.65 7.46% 1,718,473 COCO 3:48PM EDT 15.85 1.74 12.33% 4,306,734 From Inside Higher Ed:  WASHINGTON — Robert Shireman, the deputy under secretary of education who led [...]

SLA Blog To Return in September

Given my backlog of projects, research interests and website updates which I never seem to get around to, I thought it made sense to hit the pause button on the blog for the summer.  Look for the blog to return in early September.  I will be continuing to monitor the private student loan market and [...]

Sallie Mae’s Killeen Service Center Sold To Aegis; 350 Jobs Saved

From Marketwire:  "Aegis Limited, a leading global business process outsourcing (BPO) provider and part of the Essar Group, a multi-national conglomerate with approximately $15 billion in annual revenues, today announced that it has signed an agreement with US-based education finance service provider Sallie Mae to acquire its customer service center in Killeen, Texas, and transfer [...]